If you financed a car before 2021, you might have overpaid due to hidden commissions in finance agreements. Many people who took out PCP (Personal Contract Purchase) or HP (Hire Purchase) between 2007 and 2021 could be owed compensation. The process to reclaim mis-sold car finance can vary, depending on several factors.
How Does the PCP Claims Process Work?
The process begins when you submit your complaint to the lender or finance provider. Once they receive your claim, they must investigate the case and provide a response. If they reject the claim or delay their response, you can escalate it to the Financial Ombudsman Service (FOS).
How Long Does It Take for a PCP Claim to be Resolved?
Most PCP claims take between 4 to 12 months, depending on the complexity of the case. If the finance provider accepts the claim, the process may conclude sooner. However, if the claim is disputed or escalated to the Financial Ombudsman Service (FOS), it could take longer.
Key Factors Affecting PCP Claim Processing Time
- Lender Response Time: Some lenders may respond within a few weeks, while others take months.
- Claim Complexity: If your agreement involves multiple lenders or high-value claims, it may take longer.
- Escalation to FOS: If the lender rejects the claim, taking the case to FOS can extend the timeline significantly.
- Volume of Claims: A surge in complaints can lead to backlogs, delaying individual claims.
Latest FCA Update on PCP Claims Processing
The Financial Conduct Authority (FCA) has extended the deadline for motor finance firms to provide final responses to complaints until 4 December 2025. This means that some claims may take longer to resolve. Customers should still submit their claims as soon as possible to avoid unnecessary delays. Read the FCA Update Here.
Steps to Speed Up Your PCP Claim
- Gather Evidence: Collect all relevant finance documents, emails, and agreements before submitting a claim.
- Use a Mis-Sold Car Finance Calculator: Many firms offer free tools to estimate how much you could be owed.
- Submit an Accurate Claim: Double-check all details before submission to avoid unnecessary delays.
- Follow Up Regularly: Contact the finance provider every few weeks for updates.
- Escalate if Necessary: If the lender does not respond within eight weeks, escalate the claim to FOS.
How to Check If You Are Eligible?
If you financed a car between 2007 and 2021, you might be entitled to claim thousands in compensation. Many agreements included hidden commissions, meaning customers unknowingly overpaid. Check if you’re eligible by using the free mis-sold car finance payout calculator.
What Happens After You Submit a PCP Claim?
- Acknowledgment: The lender confirms receipt of your complaint within a few days.
- Investigation: The lender reviews your claim, which can take several weeks.
- Response: A decision is provided within eight weeks, though some cases take longer.
- Escalation: If rejected, you can refer the claim to the Financial Ombudsman Service.
- Payout: If successful, the lender issues compensation directly to your account.
What If Your PCP Claim Is Rejected?
If your claim is rejected, you can appeal the decision or escalate the case to the Financial Ombudsman Service. This process can take an additional 6 to 12 months, depending on case complexity. It’s important to act quickly and provide as much evidence as possible.
Why You Should File Your PCP Claim Now
Although the FCA has extended the complaint deadline until December 2025, it’s best to start your claim as soon as possible. Delays in processing claims could lead to longer wait times as more people submit complaints. If you believe you were mis-sold a finance agreement, begin the process today.
Final Thoughts
While PCP claim processing times vary, most cases take 4 to 12 months to resolve. Some claims may take longer if escalated to the Financial Ombudsman Service. To increase your chances of a quick resolution, gather all necessary documents, follow up regularly, and escalate if needed. Start your claim today and check how much you could be owed using the PCP Claims calculator.
